Article Review: Riba and Islamic banking
by Ahmad, A. U. F., & Hassan, M. K. The responsibility of a Muslim towards another Muslim are many, including to learn about Islamic transaction when they are dealing with business trade, finance and buying and selling transaction. This kind of knowledge will avoid them from being trapped/involved with riba transaction and other prohibited elements in Islam Riba is derived from an Arabic word ‘raba’ that literally means ‘to grow’ or ‘expand’ or ‘increase’. Technically, riba could be defined as ‘premium’ that must be paid by the borrower to the lender along with the principal as a condition for a loan or for an extension in its maturity. Riba has been classified into two categories according to the transaction which give rise to riba: Riba al-nasiah (delayed payment interest) which involves lending and borrowing, Riba al-fadhl (increase interest) which involves buying and selling. The main hadith with reference to the comprehensive meaning of
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